PROPERTY DISPOSITION / Naftex Energy Corp. completes Sale
VANCOUVER, Feb. 10 /CNW/ - NAFTEX ENERGY CORPORATION
Trading Symbol: NFTX
NAFTEX ENERGY CORPORATION (the ''Company'') is pleased to announce that
further to its news release of February 3, 1998 it has now closed the sale of
its 5% interest in the East Shabwa Contract Area in the Yemen Arab Republic to
Comeco Petroleum Inc. and has received an overall consideration of US$9.21
million (Cdn$13.20 million).
This cash places the Company in a strong financial position to pursue an
aggressive development and exploration program on its West Esh El Mallaha
(WEEM) Concession in Egypt.
Following its successful discoveries during its initial exploration
program on the WEEM Concession the Company, in conjunction with its joint
venture partner, will proceed to explore the remaining 85% of the area that
appears to contain all of the elements of a petroliferous basin and
preparations are underway to drill a minimum of two appraisal wells and two
exploratory wells.
The two exploratory wells are planned on separate structures, identified
by existing seismic, that lie between the Rabeh and Rabeh East structures and
the Seagull Hurghada Block discoveries. The two appraisal wells are step-outs
to the Rabeh-1 Well and, if successful, will be expediently tied-in as
producers. Tenders are also being sought for a 200 square kilometre 3D
seismic survey and up to 500 kilometres of 2D seismic to cover the remaining
85% of the WEEM Concession Area, which remains, essentially unexplored.
Production from the Rabeh-1 Well on the WEEM Concession commenced
February 2, providing the Company with immediate cashflow. This cashflow in
conjunction with the proceed from the sale of the Company's East Shabwa
interest should provide more than adequate funding for the Company's financial
commitment to the WEEM project over the remaining three year term of the
exploration phase on the Concession.
A total of 54,047,191 common shares of the Company is presently issued
and outstanding.
On behalf of the Board of Directors
NAFTEX ENERGY CORPORATION
Stephen S. James,
Vice-President Corporate Counsel
|
